UNITED STATES - Teacher Retirement System of Texas has approved a commitment of $100m (€77.5m) to the third CBRE Wood Partners Development Fund.
The fund value-added/opportunistic fund, managed by CBRE Global Investors and Wood Partners, will target apartment developments in US markets.
The fund will concentrate on markets with strong demand fundamentals and limited new supply, predominantly major markets on the east and west coasts, but possibly also Chicago, Denver, Houston and Dallas.
Apartments is one of the few sectors where there is significant development on a wide scale, predicated largely on a growing demand for rented multi-family accommodation throughout the US.
The investment follows on from two commitments made by Texas Teachers in 2011 and 2010 to two previous CBRE Global Investors/Wood Partners investment vehicles.
Texas Teachers has placed the new investment into its real assets portfolio, which includes real estate.
The pension fund's real asset portfolio was valued at $11.8b in June 2012, representing 11% of its $110bn of total assets under management.